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About.com Logistics / Supply Chain: Most Popular Articles
Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. This article looks at the history and implementation of TQM.
International commercial terms or Incoterms are a series of sales terms that are used by businesses throughout the world. Incoterms are used to make international trade easier. They are used to divide transaction costs and responsibilities between buyer and seller. This article describes in detail the thirteen incoterms that can be used.
Supply chain management can be simple or complex, but all supply chains contain similar elements and are managed in a similar way. This article will give you a introduction to these concepts. Firstly, you will learn about the elements that define a company's supply chain. Secondly, you will discover the three levels of management that are required to efficiently operate the supply chain.
Companies are constantly trying to find ways to improve performance and warehouse operations is area where supply chain managers can focus to gain maximum efficiency for minimum cost. To get the most out of the operation, a number of best practices can be adopted to improve productivity and overall customer satisfaction. Although best practices vary from industry to industry and by the products shipped there are a number of best practices that can be applied to most companies.
Cycle counting is a popular inventory counting method that allows businesses to count a number of items in a number of areas within the warehouse without having to count the entire inventory. Cycle counting is a sampling technique where count of a certain number of items infers the count for the whole warehouse. This article shows different cycle counting methods that can used in a warehouse.
Negotiation in the purchasing process covers the period from when the first communication is made between the purchasing buyer and the supplier through to the final signing of the contract. Negotiation can be as simple as trying to obtain a discount on a case of safety gloves through to the complexities of major capital purchases. This article looks at negotiations in the purchasing process.
The supply chain constantly changes and that will affect any logistics organization. To adapt to the flexibility of the supply chain, companies should develop and implement a formal logistics strategy.
Third party logistics (3PL) companies are a becoming an important part of today’s supply chain. These companies offer services that can allow businesses to outsource part of all of their supply chain management function. This article examines the rise of the 3PL providers and the mechanism that should be used in the selection of a third party logistics provider.
Measuring purchasing performance is important as the purchasing department plays an ever increasingly important role in the supply chain in an economic downturn. A reduction in the cost of raw material and services can allow companies to competitively market the price of their finished goods in order to win business. This article examines how companies are measuring purchasing performance.
Order picking can be defined as the activity by which a small number of goods are extracted from a warehousing system, to satisfy a number of independent customer orders. Picking processes have become an important part of the supply chain process. Picking is seen as the most labor-intensive activity for almost every warehouse and this article examines order picking solutions that are available.
The layout of a warehouse may need to be changed to accommodate new product lines or to add greater flexibility to the warehouse operations. When a new warehouse layout is proposed a detailed planning process should be followed to ensure the success of the project. The planning process is discussed in this article.
Oracle E-Business Suite (EBS) version 12 is an internet enabled product that can be managed from a single site. A company can operate a single data center with a single database, similar to other ERP products. This release was launched in February 2007 and contains a number of product lines which users can implement for their business. Oracle EBS includes the company’s ERP solution as well as supply chain management (SCM) and customer relationship management (CRM) applications.
Many companies store their products on pallets in the warehouse. There are a number of pallet storage methods that allow the warehouse staff to store pallets efficiently. This article will examine a number of the pallet storage methods that are commonly used.
Lean supply chain management should be considered by businesses who want to streamline their processes by eliminating waste and non-value added activities. Companies have a number of areas in their supply chain where waste can be identified as time, costs or inventory. To create a leaner supply chain companies must examine each area of the supply chain. Lean supply chain management can improve the company’s competitiveness as well as improve the company’s overall profitability.
The term cross docking refers to moving product from a manufacturing plant and delivers it directly to the customer with little or no material handling in between. Cross docking not only reduces material handling, but also reduces the need to store the products in the warehouse. In this article, the different types, benefits and products suitable for ctross docking are examined.
Safety in American warehouses is regulated by a series of standards from the Occupational Safety and Health Administration, commonly known as OHSA. The main focus of OSHA is to prevent work-related injuries, illnesses, and deaths. This article examines the most frequent citations given by OSHA and some of the practical solutions that can be employed in the warehouse.
In the supply chain, forecasting is necessary for manufacturers. Companies use material forecasting to ensure that they produce the level of material that satisfies their customers without producing an overcapacity situation where too much inventory is produced and remains on the shelf. This article examines the use of forecasts in the supply chain with statistical and non-statistical methods.
The strategic supply chain processes that management has to decide upon will cover the breadth of the supply chain. These include product development, customers, manufacturing, suppliers and logistics.
The public have become more aware of environmental issues and consumers are asking companies about their environmental policies. This article examines how some companies have found that starting to create a green supply chain can add to the bottom line.
Vendor Managed Inventory or VMI is a process where the vendor creates orders for their customers based on demand information that they receive from the customer. The vendor and customer are bound by an agreement which determines inventory levels, fill rates and costs. This article describes the VMI process.
SAP is the number one vendor of standard business application software and the third largest software supplier in the world. SAP delivers scalable solutions that enable its customers to further advance industry best practices. This article looks at the various logistics components in SAP.
Warehouse Management Systems (WMS) have been available for decades and initially allowed simple storage location functionality. Today WMS systems can be standalone or part of an ERP system and can include complex technology such as Radio Frequency Identification (RFID) and voice recognition. However the basic principle of a WMS has remained the same, which is to provide information to allow efficient control of the movement of materials within the warehouse
The cost of carrying inventory is used to help companies determine how much profit can be made on current inventory. The cost is what a business will incur over a certain period of time, to hold and store its inventory. This article looks at the different components that combine to produce an overall cost of carrying inventory.
When companies are considering an enterprise resource planning (ERP) system, the short list usually includes SAP and Oracle. However, Lawson Software offers an ERP system that has been ranked as the number one ERP software product for cost per user by the Aberdeen Group. This article examines the the history of Lawson Software and their current ERP applications.
Safety stock is required by businesses to ensure that they have sufficient quantities of material in stock. The safety stock provides coverage for unexpected customer demand, damage in the warehouse or quality issues found in production. However, there are situations where firms do not require inventory to be in stock. This article looks at the methods that can be used to calculate safety stock
When your company communicates with your customers the process can involve many different people within both organizations using a variety of different methods. To ensure that your company can provide the best customer service experience possible the use of customer relationship management (CRM) software should be considered. This article examines the elements that are found in customer relationship management software.
Supply chain operations within an organization should be constantly reviewed to identify where improvements can be made or deficiencies eliminated. One method to help do this is to perform a series of benchmarking tests on their supply chain processes. This article reviews the methods involved in benchmarking supply chain processes.
Capacity is often defined as the capability of an object, whether that is a machine, work center or operator, to produce output for a specific time period, which can be an hour, a day, etc. Many companies ignore the measurement of capacity, assuming that their facility has enough capacity, but that is often not the case. This article looks at the different methids of measuring capacity.
Early 2009 Wal-Mart introduced a plan that was hoped to ensure that the company would remain the industry leader. Project Impact is based on three strategic initiatives that will improve the benefits to the customer. The three initiatives are; Save Money, Live Better; Win, Play, Show; and Fast, Friendly, Clean. This article examines aspects of the Project Impact initiative.
Sales and operations planning (S&OP;), sometimes known as aggregate planning, is a process where executive level management regularly meets and reviews projections for demand, supply and the resulting financial impact. S&OP; is a decision making process that makes certain that tactical plans in every business area are in line with the overall view of the company’s business plan.
Small businesses are often not associated with manufacturing, however in the US small manufacturers can be found in all fifty states. Organizations such as the American Small Manufacturers Coalition (ASMC) exist to promote small manufacturers and to lobby government to assist with legislation and federal programs. This article examines some of the manufacturing processes that are used by small businesses.
In SAP the inbound logistics functionality incorporates inbound deliveries, inbound shipments as well as goods receipts. The outbound logistics functionality covers the picking and packing of materials as well as the outbound delivery and goods issue. This article gives an overview of the inbound and outbound delivery processes in SAP.
Just in Time or JIT method creates the movement of material into a specific location at the required time, i.e. just before the material is needed in the manufacturing process.
There are a number of costs that make up the total inventory costs for a company. Order costs include the expenses involved in placing an order for a quantity of material, but this does not include the actual cost of the material itself. Setup costs are incurred when production or assembly lines are changed for example when the manufacturing department has to change equipment for a different product or part to be manufactured. This article looks at both these types of costs.
The forklift truck has been around for a little under a century, but today it is found in every warehouse operation around the world. Developed as a result of manpower shortages the forklift evolved from a tractor with attachments to the vehicle used today. Recent technology has led to new hybrid vehicles that are environmentally friendly. This article looks at the different classes of forklifts.
Transportation costs can be a significant part of a company’s overall logistics spend. With the increases in the price of fuel, the proportion allocated to transportation can be upward of fifty percent. Transportation costs are a major target for company’s to reduce and there are a number of transportation strategies that can be used by management to help reduce costs. This article looks at some of those strategies.
The product life cycle can be divided into several stages characterized by the revenue generated by the product. A life cycle can be very short or very long. Most products start in the product development stage. Companies develop new products all the time and a small percentage of those reach the market. This article describes the different stages in the product life cycle.
Warehouse productivity is a number of measurements that management will analyze to monitor the performance of their warehouse operations. The basis of many of the measures used in warehouse productivity is based on how much it costs to perform an operation. is article looks at a number of measure used in warehouse productivity.
Commercial trucks that operate on US highways can be classified based on their gross vehicle weight rating (GVWR). The classification is divided into eight classes, one through eight, although many people use the more generic terms, light duty, medium duty and heavy duty. This article examines the different types of truck classifications in the US.
Quality is an important part of the supply chain, whether it is quality inspections during the manufacturing process or checking quality as raw materials and parts enter the factory. Before any part or raw material is used in a manufacturing it is the responsibility of the purchasing department to ensure that the materials that arrive are of the correct quality specification. This article looks at quality in the procurement process.
Implementing a world class purchasing strategy will allow your company to stabilize or even increase profits at a time when your costs are rising. This step by step guide will show you the key points to helping you company implement the key elements for a world class purchasing strategy.
The Six Sigma system uses a number of quality methods and tools that are used by Six Sigma trained professionals within the organization. The DMAIC problem solving method can be used to help with any issue that arises, usually by those who professionals in the organization who have reached green belt level. This article examines the elements that make up the DMAIC methodology.
Operational supply chain decisions are made hundreds of times each day in a company. These are the decisions that are made at business locations that affect how products are developed, sold, moved and manufactured.
Companies are constantly looking at their supply chain to reduce costs while improving the quality of the items they purchase. To select the appropriate vendor for a particular item, a purchasing department can use a vendor evaluation tool. The evaluation of vendors can be determined by using a number of criteria that are either derived from transaction data or observations. The article is an introduction into the vendor evaluation process.
Products are moved from point to point by a number of different modes of transport; air, rail, water and truck. In the US, the movement of goods by truck offers shippers infinite flexibility due at a relatively low cost. Truck transportation can move large items faster than rail as the shipment is not dependent on the railroads timetable. This article looks at the Less Than Truckload (LTL) sector.
Warehouses are busy places. Goods are constantly on the move; inbound and outbound deliveries have to be dealt with as well as the movements of items from location to location. Many companies are looking to warehouse operations are an area where they can make environmentally sound decisions. Companies are concentrating on three areas to help them in this endeavor; reduce, reuse and recycle. This article will show you where you can help your company make your warehouse green.
Six Sigma is a business management strategy that was initially developed by Motorola in the 1980’s, and now is used in many Fortune 500 companies. It is used primarily to identify and rectify errors and defect in a manufacturing or business process. Six Sigma uses a number of quality methods and tools that are used by professionals within the organization who have been trained on Six Sigma techniques. This articles explains some of the common terms used in Six Sigma projects.
When a manufacturing company begins production of a new material, it has a choice as to the manufacturing process it uses. The type of process depends on the facility, the staff, and the information systems available. Each process has its advantages and some are best at certain tasks, for example, large batches of finished goods, or small numbers of custom items. This article looks at the many manufacturing processes.
Reverse Logistics can be defined as all activity associated with a product after the point of sale. The aims of reverse logistics include optimization of aftermarket activity, such as customer service, quality inspection and warehouseing, which can produce a new revenue stream, improve customer satisfaction and help the environment. This article examines the elements of reverse logistics.
The procurement card, or P-card, is a form of company credit card that is issued to employees who can then purchase goods and services without having to process the purchase through a traditional purchasing procedure, such as using purchasing requisitions and purchase orders. This article looks at benefits and risks of the procurement card program.
Kuehne and Nagel (KN) are the world’s second largest logistics company, the number one global seafreight forwarder, top three global air cargo forwarder, and top three contract logistics provider. The company was founded in 1890 in Germany, and has more than 1000 offices in over 100 countries, and over 63,000 employees. This article examines the history and growth of this logistics leader.
The Federal Highway Administration (FHWA) is a part of the US Department of Transportation (DoT). It is responsible for the federal size and weight regulations for commercial motor vehicles (CMV). The regulations are found in Code of Federal Regulations (CFR), 23 CFR Part 658. This article examines the size and weight limitations specified in the federal regulations.
Total Quality Management is a popular approach to quality in a business that seeks to improve quality and performance which will meet or exceed customer expectations. One core component to TQM is the principle of continuous improvement. There are a number of tools available to ensure that continuous improvement is successful, including process mapping, root cause analysis, and the plan do check act (PDCA) cycle. This article examines these continuous improvement tools in more depth.
Ariba is the leading provider of Spend Management solutions that offers procurement departments the opportunity to manage, monitor and analyze purchasing expenditure. Ariba offers suppliers the ability to create catalogs that can be accessed by its customers on its Supplier Networ. Founded in 1996, Ariba has over 160,000 suppliers with a monthly spend of over $8 billion.
When items are transported either domestically or internationally the delivery must be accompanied by the relevant documentation. The amount of documentation varies depending if the shipment is within the US or to another country. These documents include the freight bill, the bill of lading and the FOB terms of sale. This article examines these transportation documents.
DHL quickly became a leader in international air express delivery shortly after the company was founded in 1969. Initially the company operated a door-to-door express delivery service, transporting documents between San Francisco, California and Honolulu, Hawaii. With expansion into the Asia the company soon became the leader in international overnight service. This article looks at the rise of the overnight delivery company.
Inventory management is the process of efficiently monitoring the flow of products into and out of an existing inventory in the warehouse. This process involves controlling the receipt of products in order to prevent the inventory from becoming too high where items are stored at an unnecessary cost, or too low where it can cause a stock-out and production could be halted due to lack of raw materials. This article examines inventory management in SAP.
A company’s supply chain will include warehousing functions. It can be company-owned, owned by a third party logistics (3PL) firm or a public warehouse. Extra warehouse space is sometimes required due to any number of factors including; seasonal inventory, warehouse re-organization or warehouse damage. This article examines public warehousing and the criteria used in selecting a public warehouse.
In recent years many companies have been through the experience of becoming ISO 9000 certified. Sometimes this can be long and expensive process, but businesses are willing to go through certification for the benefits it brings. This article looks at the procedure that a company must follow to achieve ISO 9000 certification.
Businesses of any size has to purchase items to either manufacture finished goods or to provide services. Before a purchasing department can purchase material in SAP, the department’s unique infrastructure must be configured. To design a structure that best meets a business’s needs, you need to understand the SAP organizational structure and the decisions a purchasing department needs to make.
Current Good Manufacturing Practices (cGMP) are followed by pharmaceutical and biotechnology companies to ensure that their items are manufactured to specific requirements. This article is an introduction to the regulations that govern the manufacture of pharmaceuticals and bioligicals in the US.
The implementation of EDI is important for companies as it can significantly reduce the cost of sending documents. A paper purchase order requires resources to print the PO, fax it, or post it to the vendor. EDI automatically sends the electronic document to the vendor thus reducing the cost of sending the PO. This article describes the basics of EDI and how it is used by businesses.
SAP Extended Warehouse Management (EWM) is a component of the SAP Supply Chain Management (SCM) business suite. The EWM function is not a part of the SAP ERP suite, which contains standard warehouse management. SAP has announced that although they will continue to support SAP WM, they will not be enhancing the product, and all new warehouse functionality will be included in the EWM component.
Companies require that quality is part of every link in the supply chain, whether it is raw material at a vendor’s facility or finished goods delivered to a customer. To ensure that the quality personnel are able to achieve the optimum results, a Laboratory Information Management System is vital to that success. This article describes the key features of the a LIMS system.
For logistics businesses the rising cost of fuel has meant that they need to become efficient in the way that they plan their transportation routes. The traditional methods of route planning do not address real time events that affect businesses every day. This article looks at how modeling can create successful route planning.
Hazardous materials are often found in a warehouse. These materials can be either raw materials or finished goods depending on the nature of your company’s products. However, a hazardous material is one that is capable of producing harmful physical effects . This article examines the subject od hazardous materials in your warehouse and the regulations in place for their safe use.
Lean Manufacturing has grown out of the production system developed by the Japanese automaker, Toyota. After WWII, Japanese manufacturers adopted production and quality procedures from US industry and expanded the principles to reduce waste in the manufacturing process. This article looks at the origins and principles of Lean Manufacturing.
Trend towards developing a green supply chain is popular but most companies are wondering how this can be achieved and where to start. Businesses have been concentrating on improving supply chain visibility, refining efficiency and minimizing cost. Despite the focus being moving towards a green supply chain the goals of visibility, efficiency and cost reduction do not have to be discarded. Firms who have implemented green supply chains can offer a number of best practices that will help others.
FedEx, previously known as Federal Express, is a major player in the package delivery market and a direct competitor to global leader, United Parcel Service (UPS). FedEx was founded in 1971 and now has an annual revenue of $40 billion and 300,000 employees. This article examines the history of the company from its early days in Little Rock to the global logistics company it is today.
Every company that embarks on an implementation of an enterprise resource planning (ERP) project hopes that the implementation will be a success; on time and on budget. There are a number of critical success factors that could help ensure that success of a typical ERP project. This article highlights some of the most important strategies that can be adopted for a successful ERP implementation.
Customer service is an important element for making a successful business. You can have a wonderful product, but without excellent customer service the item will never be purchased. The customer interacts with a company through a number of channels and the level of service that is afforded the customer goes a long way to achieving customer satisfaction and in turn more orders for the company. This article looks at the key elements for a world class customer service strategy.
The first use of Radio Frequency Identification (RFID) was documented in the 1940’s by the British Royal Air Force to identify aircraft in World War II and was part of the refinement of radar. During the 1960’s RFID was first considered as a tracking solution in the commercial world. The first applications involving RFID were developed over the next twenty years. This article looks at the benefits of RFID and its advantages over using barcodes.
Quality inspections are important when a manufacturing company creates finished goods; it cannot afford to wait until the items are coming off the end of the production line before they are inspected. Issues in production need to be addressed early in the process in order to correct problems. This article examines the use of quality inspections along the supply chain.
Radio Frequency Identification (RFID) is becoming more prevalent in the manufacturing industry as companies find ways in which its benefits can be used to greater enhance the accuracy of data collection and identification of products. This article examines the use of SAP Auto-ID for companies who look to implement RFID with their SAP ERP application.
Market segmentation is the identification of parts of the market that are different. Segmentation gives a company a greater ability to better satisfy the needs of its customers. However, not all customers are the same and each has unique characteristics and requirements that may not be found in any other customer. This article examines some of the elements of market segmentation.
Every day the media has reports of cases of unethical business practices that involves the purchasing of materials or services in almost every country in the world. Although we like to think that the people who determine contracts and purchasing agreements are fair and ethical, there are some that will accept coercion that may affect the award of contracts that are worth thousands of dollars to those that are worth millions of dollars. This article looks at the ethics involved in purchasing.
Tactical supply chain decisions focus on adopting measures that will produce cost benefits for a company. Tactical decisions are made within the construct of the wider reaching strategic supply chain decisions that are made by company management.
The main function of the freight forwarder is to act as an intermediary between the client who is hiring them and various transportation services that are involved in getting the product overseas to the customer. This article looks at the different services that a freight forwarder can offer.
The Sarbanes-Oxley Act, sometimes called SOX, actually refers to the federal law, The American Competitiveness and Corporate Accountability Act of 2002. It was introduced after the Enron and Worldcom scandals where billions of investor’s money was lost when the share price of these public firms became worthless. This article looks at how Sarbanes-Oxley has affected the manufacturing industry.
Businesses are examining every area of their supply chain to reduce costs. Reducing waste has become a key component of any cost reduction program that is implemented. There are a number of processes that can be used in order to reduce waste in a company’s supply chain. This article shows some of the processes that can be adopted to reduce waste in the supply chain.
Kanban is a scheduling system that is used in manufacturing to help companies improve their production process. The kanban system is a “just-in-time” method that was developed sixty years ago in Japan by Toyota to improve manufacturing. The method has been adopted by companies all over the world and has been incorporated into many new enterprise resource planning (ERP) systems. This article looks at the basics behind the Kanban process.
Quality is important all along the supply chain and one area that is very important in the monitoring of quality is the inspection of items that arrive at the facility from your suppliers. Ensuring that the parts and raw materials are of the correct quality or specifications before the item even enters the plant is a key aspect of ensuring total quality of the finished goods. This article looks at the importance of inbound quality inspections.
The sales and distribution (SD) function of SAP is part of the logistics area and contains the processes that help a company integrate with their customers. These processes include providing quotations to customers, receiving sales orders via phone, internet or EDI, shipping the finished goods, and finally billing the customer for the goods that they have received.
Manugistics began life as a company called Scientific Time Sharing Corporation (STSC), formed in 1969. Initially STSC was geared towards writing programs using the APL computer language for IBM. After a number of years of developing APL programming for the personal computer and developing operational decision-support software, STSC changed its name to Manugistics in 1992. This article looks the rise and fall of Manugistics and its purchase by JDA Software in 2006.
Companies that want to export items from the United States need to understand that their exports fully comply with all statutory and regulatory requirements. Compliance involves the no-export of controlled goods and technologies and the restrictions on shipping to certain countries, companies, organizations, and individuals. This article exaplains some of the regulations that apply.
Many organizations see Lean Six Sigma as the evolution of the Six Sigma methodology rather than a modification. Six Sigma has been developed over the last thirty years and has become the de facto methodology to eliminate defects from a process and improve the quality of the manufacturing process. The objective of this article is to examine the key steps in the Lean Six Sigma process.
The SAP Strategic Enterprise Management (SEM) product provides integrated software with comprehensive functionality that allows a company to significantly streamline the entire strategic management process. The SAP SEM product can be installed independently of a SAP ERP system as it does not require a direct link to the ERP software. This article examines the components of the SAP SEM product.
Quality Management (QM) is an integral part of the logistics function and within the SAP application it is fully integrated with complementary components including Materials Management (MM), Plant Maintenance (PM), and Production Planning (PP). This article gives an overview of the SAP quality management component.
Plant Maintenance is an integral part of the logistics function and in SAP it is fully integrated with other components including Materials Management (MM) and Production (PP). The plant maintenance function covers three areas of maintenance; inspection, prevention and repair. this article gives an overview of the SAP Plant Maintenance functionality.
In a depressed economy, companies are looking at any supply chain process where they can save time, money or resources. Drop shipping is a popular process where companies can reduce the need to keep inventory in their warehouse, lower their overall shipping costs and improve customer service. This article examines the advantages and disadvantages of drop shipments.
With companies investing ever greater resources in their supply chain there is a distinct trend to have the best and brightest employees managing those supply chains. In the past companies have employed staff with various levels of education that covered a wide range of subjects. Higher education in supply chain management is becoming more important and this article looks at current trends.
A crucial activity for planners is to when to decide to place an order. There are a number of reorder methodologies that can be adopted. Although most computer systems are based on the materials requirement planning (MRP) method, there are other methods that planners can use which are examined in this article.
A programmable logic controller (PLC) is a designed to perform industrial control operations which can occur on the production line. The PLC is a microcomputer which has a central processing unit (CPU) that controls all of the activity that is required of the PLC. The CPU contains the main processor and system memory. This article examines the history and uses of the PLC.
Almost every product we purchase as a consumer or a business is packaged. The packaging was initially intended to provide protection for the item as it being handled in the warehouse or when the item is being shipped. Packaging can be extremely elaborate, and for the consumer it can be an art form to entice you to make a purchase. This article looks at the packaging used in the warehouse.
A major American chemical company had completed a year of supply chain reengineering and decided upon a number of best practices that should be implemented. One element of the reengineering was that they decided upon creating a shared service function at their headquarters which rationalized the purchasing and accounts functions.
Master scheduling is the detailed planning process that tracks manufacturing output and matches this against customer orders that have been placed. The master schedule is the next step in planning after the sales and operations planning (S&OP;). This article will examine the master scheduling process.
Customer satisfaction is extremely important in an economy where the vendors are having to work hard to win new business and keep their existing customers. If a company fails to satisfy their existing clients there are many other vendors who would like the opportunity to win the business. This article looks at how vendors can win and retain customers by providing a high level of customer service.
A company that needs to package their products have choices in which material they use for packaging. Traditionally companies could use polystyrene materials, but companies are becoming aware of the environmental impact of polystyrene, and need to find suitable green alternatives. The article looks at the properties of corn starch packaging material.
Quick Response Manufacturing (QRM) is the latest development in lean manufacturing where companies have progressed from the just-in-time (JIT) methodologies of the 1970’s. The QRM process looks at how lead times across the company can be reduced to increase productivity. This article examines some of the fundamentals of quick response manufacturing.
As we enter a new decade it is time to look back at the past ten years and reflect on three of the largest company failures in the supply chain sector. Although the internet bubble produced a significant number of company failures, changes in customers needs, changes in technology and all round bad management led to some of the more notable failures of the decade.
When storing items in a warehouse it is sometimes advantageous to store together materials that have similar characteristics, i.e. that require refrigeration or that are over-sized. This article examines the storage zones that can be found in a typical warehouse.
When you negotiate a contract with a supplier the terms of the contract specify details such as the quantity to be purchased, pricing, discounts, and delivery instructions. The contract will also contain clauses on what the procedure is to cancel the contract for certain reasons. This article looks at the ways in which a purchasing contract can be terminated.
The Institute of Supply Management offers three certifications for supply chain professionals. the Certified in Supply Management (CSM), the Certified Professional in Supplier Diversity (CPSD) and Certified Professional in Supply Management (CPSM). This article examines these certification programs.
Supply chain management professionals are actively pursued by companies in the US and globally. In recent years companies looking to hire staff for supply chain positions are looking favorably at candidates with supply chain certification. This article examines some of the educational options that supply chain professionals can choose from.
United Parcel Service (UPS) began as company founded with a loan of only $100 back in 1907. Since then the company has grown into the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. This article describes some of the history of this company and how it has grown to the multi-national corporation it is today.
A company may make a decision to have an in-house vehicle fleet based on the needs of the company to get goods to customers as quickly as possible. However the convenience of having a vehicle fleet to transport items at a moment notice comes at a considerable price. This article looks at the cost of owning a fleet of delivery vehicles.
ASQ, formerly known as the American Society for Quality offers certification in seventeen areas for quality professionals, including certificates for Quality Auditors, Quality Engineers, as well as Six Sigma certification in Green Belt and Black Belt. This article looks at the certifications that ASQ offers.
Wherever you travel these days there is always a container nearby. Whether it is on a train, on a ship, or on a truck, intermodal containers are an integral part of today’s supply chain. The modern era of containerization started only fifty years ago and revolutionized the way in which goods were moved along the supply chain. This article examines the development of the shipping container over the last half century.
Open source software has gained a significant foothold in the business work and it is natural that open source ERP and customer relationship management (CRM) solutions are the next evolutionary step in the process. The open source ERP and CRM solutions can be purchased by a company and used as is. This article looks at the advantages and disadvantages of open source ERP software.
As companies want to develop their supply chain management teams they are looking for employees that can offer more than the basic knowledge of logistics and supply chain. Candidates that offer potential employers additional knowledge and experience are in greater demand and candidates can show that they have these skills by formally recognizing them through certifications. This article examines the different types of lean certification available.
Transportation is very important element of the supply chain, without transportation, no finished goods would reach their intended customers and no raw materials would ever reach the plant. The transportation functionality in the SAP system allows a company to efficiently ship items from a facility to the customer. This article gives an overview of transportation in SAP.
management software have an increasing number of software companies competing for their business. For business owners who feel that products from Oracle, SAP and JDA are too complex and too expensive for their businesses, Microsoft has a range of products under the Microsoft Dynamics umbrella that are more applicable for small and medium businesses.
Airborne Express had an unusual beginning. It was founded as the Airborne Flower Traffic Association of California in 1946 to fly fresh flowers from the state of Hawaii to the US Mainland. In 1968 Airborne merged with Pacific Air Freight and the focus of the business moved towards regular freight movements. The company continued for another thirty-five years when it was finally purchased by DHL in 2003. This article looks at the history of the company.
Project management methodology is important when a company initiates a number of projects across their enterprise. By either developing an in-house company methodology or adopting a standard methodology, each project should operate along a given set of principles that can be transposed from project to project. This article looks at what should be included in a project methodology.
In any modern manufacturing facility the equipment used requires a level of maintenance to ensure that the manufacturing process is not disrupted and the production plan can be achieved. World class organizations spend time and resources on maintaining their equipment using a preventative maintenance plan. This article looks at the processes included in Total Productive Maintenance (TPM).
A company will have any number of projects in progress at one time. These may be as complex as installing a new enterprise wide computer system, creating a new warehouse, or as simple as purchasing a new commercial vehicle. Project management incorporates all of the interactions and interrelationships that need to occur to make the project successful. This article examines the basics of project management.
Wood pallets have traditionally been the way in which material is moved from vendor to customer and then onto the consumer. The wood pallet sits in warehouses and stores throughout the world. In the US there are millions of pallets in use every day and the vast majority is made from wood. For the manufacturer of the wood pallet there are voluntary guidelines and this article looks at these standards.
An important component of SAP is the Advanced Planning and Optimizer (APO) application. APO is a suite of supply chain planner applications that increase overall knowledge of the supply chain and provide forecasting, planning and optimization. This article looks at the basics of the APO function.
Customer Service functionality contains the processes that a company requires to deliver the services are offered to customers. These services can be for warranties that are offered with products or warranties that are purchased by customers. This article looks at the major aspects of the SAP customer service functionality.
The supply chain incorporates all aspects of moving material from the vendor through the manufacturing process to the final customer. The supply chain focuses on vendors, manufacturers, intermediaries, logistical services and the customer. The supply chain is no longer contained within countries borders, but encompasses all nations, whether they are vendors, manufacturers or customers. This article will examine the ways in which companies can export their products to new markets.
The North American Free Trade Agreement (NAFTA) was implemented on January 1st, 1994 and is an agreement to remove both tariffs and investment barriers between the United States, Canada, and Mexico. Agricultural imports and exports are a significant component of the NAFTA agreement and this article examines the agricultural trade between the three NAFTA partners.
The Smartphone is a popular consumer item that has made its way into the supply chain and is becoming an invaluable tool for a wide range of processes including Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP). This article examines the use of the Smartphone and the tablet in today's supply chain.
The good laboratory practice (GLP) regulations can be applied to laboratories in a number of industries, such as pharmaceuticals and food manufacturing. The GLP regulations offer common sense and standardization of documentation to laboratories and laboratory procedures, and have been adopted in the US, EC and OECD nations. This article examines the major aspects of the good laboratory practice regulations.
The transportation industry can offer a complicated price structure when it involves moving commodities from one location to another. Each carrier has a price to move a class of commodity to one specific point to another specific point. A number of variables can make the decisions for a transportation manager very difficult when finding the best rate for a company’s shipping needs. This article looks at the way in which carriers pricing and rates are developed.
Every small business survives by ensuring that it is paid by its customers as soon the items are delivered or when the services have been provided. The accounts receivable is the amount of money that a company is owed by its customers, which is actually a form of credit that is extended to the customers. This article looks at the basics of accounts receivables.
Purchasing Managers Index (PMI) is released on the first business day of each month and is a key near-term indicator used by financial analysts and economists. Economists believe that the PMI is the single best snapshot of the condition of the factory sector and helps predict industrial production. this article looks at the PMI and how it is derived.
The Transportation Worker Identification Credential (TWIC) is issued by the Transportation Security Administration (TSA) as an identification credential for all workers requiring unescorted access of port facilities and vessels regulated under the Maritime Transportation Security Act, or MTSA.
Over the last few years, the subject of outsourcing has caused a division between employees who see that this will lead to the loss of their job and management who believe that this will save their company significant amount of money. This article looks at the advantages and disadvantages of outsourcing.
There are a number of other economies that are currently emerging and depending on their attractiveness to foreign investment and manufacturing prowess; any of these could change the overall landscape of world economies. This article discusses the reasons why these countries are the top ten emerging economies for 2011.
As traditional industries struggle with the public’s increasing environmental consciousness, there is a number of new green industries that are receiving more attention. In this article I have highlighted a number of new green industries that we will all hear more of in the coming years.
The Bundesautobahn system, commonly known as the autobahn, is well known across the world as roads that have no speed limit, but that is not actually the case. Around forty percent of the BAB has no speed limit, while the other sixty percent has a variety of speed limits depending on the area. This article will examine the history of the autobahn from the early 20th century to post unification.
The US Customs and Border Protection (CBP) agency implemented a partnership with private companies after the events of 9/11 to help protect the global supply chain. Customs-Trade Partnership Against Terrorism (C-TPAT) was launched in November 2001, with just seven major importing companies and now includes over 7400 members. This article examines the basics of the C-TPAT program
NetSuite offers four main software-as-a-service products; NetSuite Financials, which includes ERP, NetSuite CRM+, NetSuite Ecommerce and SuiteAnalytics. The company was founded back in 1998 with the initial startup financed by Oracle CEO Larry Ellison. Since then the company has over 6,500 customers and over 1000 employees. This article gives readers an overview of the NetSuite functionality.
The National Transportation Safety Board (NTSB) is an independent federal agency that is determines the probable cause of transportation accidents, as well as promoting transportation safety. This article examines the different offices with the NTSB and the safety recommendations they make.
The union movement in the United States started as far back as the mid-1800’s when the small organized unions started to emerge. Today, the AFL-CIO currently a federation of 57 affiliated unions, including some of the largest unions representing transport workers such as airline staff, transit employees and dock workers. This article looks at unions representing transport workers.
DB Schenker is one of the leading globally integrated logistics service providers. It is part of the Deutsche Bahn company and employs in excess 94,000 staff in over 2,000 locations in more than 130 countries. This article looks back at the history of the Schenker company and its success today.
Companies are focusing a lot of energy and resources in making modification to their supply chain to make it more environmentally sound, or green. To realize these aims companies are having to education their supply chain professionals. In twenty years time the green collar worker may be commonplace and this article examines the content of green supply chain courses that are available now.
To drive a commercial motor vehicle (CMV) as person is required to have a commercial driving license. The Commercial Motor Vehicle Safety Act of 1986 required that drivers of commercial motor vehicles were qualified to drive such vehicles to ensure greater safety on the highways of the United States. This article looks at different aspects of commercial vehicle licensing.
The transportation of raw materials and finished goods is an important part of the supply chain. Transportation can include air, rail, road, and maritime shipping. The last of these, maritime transportation, is extremely important to the US economy as approximately 95 percent of all foreign trade is carried by this mode of transport. This article is an introduction to maritime transportation.
Today there is a drive in the food supply chain for food safety along all aspects of the supply chain. Keeping food safe requires that food growers, suppliers, manufacturers, distributors and importers work in unison to ensure that the end product that reaches the consumer is safe for consumption. This article examines food safety across the supply chain.
The 9/11 Commission Act of 2007, required that by February 3rd, 2009, fifty percent of all cargo carried on passenger aircraft in the US had to go through a security screening. The TSA developed the Certified Cargo Screening Program (CCSP), a voluntary program designed to move the screening process to shippers, third-party logistics providers, air forwarders, and independent screening services.
The Flying Tigers Line was the first scheduled cargo airline in the United States and a major military charter operator during the Cold War for both cargo and personnel. After forty-three years of operation the company was acquired by FedEx in 1988. This article examines the history of the airline.
Gasoline and diesel costs are rising cross the world and the use of alternative fuels for motor vehicles, is being explored. Companies who have a fleet of vehicles are being pressured by the economic issues of the price of gas, as well as the regulatory restrictions of reducing greenhouse gases, are looking at natural gas vehicles as an alternative. This article looks at the different types of NGV's available.
Hazardous materials are transported across the US every day. The responsibility for safety lies with the Federal Motor Carrier Safety Administration (FMCSA) which has developed the FMCSA Hazardous Materials Program. This article examines the regulations, the responsibilities of each party, and incident reporting.
The Project Management Institute (PMI) is an organization that is dedicated to the education of project managers so that they have the skills necessary to perform the tasks required of them. One way in which the PMI does that is to offer globally recognized credentials that certify project management expertise. This article looks at the certification offered by the PMI.
Pallets are used by companies all over the world to move materials from one location to another and to store material in warehouses. Traditionally these pallets have been made of wood, but more recently some companies are looking to pallets made of other material to overcome some shortcomings that traditional wood pallets have. This article examines the benefits of the metal pallet.
Packaging materials are used every day in almost every company that manufactures and sells products. Packaging is used to move raw material to a manufacturer, bulk finished material to a distributor and then the final product to the consumer. As the public's perception about the environment changes, companies must look at greener packaging alternatives in their supply chain to satisfy consumers.
The SAP Supplier Relationship Management (SRM) application can connect a company with its supply base which allows multiple levels of suppliers, partners, and manufacturers to work together, while you reduce the cost of goods sold. There are a number of functions that are found in the SAP SRM application including procure to pay, catalog management, and supplier evaluation. This article examines the SAP SRM application.
The US is considering longer and heavier vehicles to be allowed to travel along the interstate highway. Currently the weigh limit is 80,000 pounds, but in some European countries the limit is far greater, up to almost 133,000 pounds. This article looks at the megatruck that could be a common sight on European roads in the next decade, if approved by the European Union.
Packaging is a very important part of the product. Industrial packaging that is used to safely move the items from the vendor to the customer or from the production line to the distribution center. It is usually packaging that is external to the product and usually discarded before the it reaches the consumer. The other type of packaging is designed by the marketing department and is specifically designed with the consumer in mind.
The Federal Motor Carrier Safety Administration develops and enforces rules and regulations that relate to drivers, vehicles, and the carrier. As well as the enforcement of regulations, the FMSCA encourages the education of drivers and carriers. This article examines the work of the FMCSA.
Pallets are everywhere. They are used in the supply chain to move raw materials and finished good, while billions of dollars of merchandise sits on pallets in tens of thousands of warehouses around the world. The pallet that most of us know is the traditional wooden pallet that is seen in warehouse stores such as Costco and Ikea. This article looks at the euro pallet and its use in Europe.
The security of products along the supply chain is becoming ever more important as there are increasing number of threats which require companies and governments to be proactive. In some regions security of products as they move from one location to another is vital to ensure trade continues and goods arrive at their final destination. This article looks at ISO 28000 and Framework of Standards to Secure and Facilitate Global Trade.
Companies that have implemented Total Productive Maintenance (TPM), often do this as a part of an implementation of other manufacturing improvement procedures such as Six Sigma. When businesses want to evaluate the relative success of their TPM procedures they often use a set of measurements. This article examines the series of metrics that are part of the Overall Equipment Effectiveness.
Computer System Validation is required for companies in certain industries, such as pharmaceutical manufacturing, to ensure that the systems they use will not affect the quality of the product. Validation is the documentation of the processes used in manufacturing that demonstrate consistency, it is required on process systems, equipment and computer systems, such as ERP implementations. This article describes the validation process.
In the discrete production process, a item is produced when a shop order is created for a requirement. The shop order will show all the tasks, materials and equipment that will be used in the manufacture of the part. The routing shows the flow of required work that needs to be achieved, which can in be one or more facilities and could include work being sent to a vendor for specialized tasks.
Across Europe road haulage operators and drivers are now subject to regulations from the European Union regarding qualifications. Council Directive 96/26/EC has been implemented to harmonize the diplomas, certificates and other evidence of formal qualifications that relate to road haulage and road passenger transport operations. This article looks at the new requirements for Certificate of Professional Competence (CPC) in Road Haulage.
After 237 years, the USPS finds itself in a crippling financial where its future is in doubt. There have been many suggestions on the future of the postal service in the United States, which includes privatizing parts of the USPS or letting the USPS go into receivership. This article looks at some of the solutions that have been proposed to help the USPS return to profitability.
In reverse auctions, a company will offer a contract on which a number of vendors will bid, based on the terms and conditions of the contract, and the company that has the lowest bid when the reverse auction expires is the winner of the contract. This article examines how and when reverse auctions should be used.
The Scrum project management methodology was developed in the 1990’s alongside the Agile methodology, as a method to allow teams to work together to get products developed. It offers only a small number of rules within the framework but allows complex projects to be completed in a short timeframe. This article looks at some of the highlights of the Scrum methodology.
Although road transportation of goods is the primary vehicle in the supply chain in the US, the freight train is still a very important aspect of the transportation network. In the UK the first steam railways came into being not for the movement of passengers but the movement of coal from the mines. This article examines the development of freight and the railroads.
Pharmaceutical products save lives every day. Manufacturers of these important drugs spend many millions of dollars over many years to bring a product to the market. There are a number of functions in a pharmaceutical company that follow the product from its original discovery to the sale of the product to the public. This article examines the functions involved in the the manufacture of pharmaceutical products.
British retailer, Marks and Spencer (M&S;), launched Plan A in January 2007, which highlights one hundred commitments to achieve in five years. Due to the success of the program, M&S; has now extended Plan A to 180 commitments to be achieved by 2015. M&S; have now stated identified a new goal of becoming the world's most sustainable major retailer. This article examines the elements of Plan A.
In 2009 the project was launched in the UK based on studies that freight traffic would increase by 40 percent between London and Birmingham. The country's second high speed link, called the HS2, has now been approved by the government after three years of impact studies and public consultations. The opening date for the first stage of the HS2 is planned for 2026. This article looks at the HS2 project.
Every company that moves items such as raw material or finished goods uses a pallet and material handling equipment to move those items. Pallets are used in every nation and in every warehouse. The majority of those pallets are made from wood, but the plastic pallet is becoming more popular. This article looks at the advantages of using plastic pallets.
The Panama Canal is an important passageway for container ships as they move cargo between the Atlantic and Pacific oceans. But the limitations of the original canal has meant that larger container ships were unable to use the canal and so an expansion project was needed. This article looks at the original canal and the expansion.
In the United Kingdom the Office of Government Commerce has specified a project management methodology to be used for projects that involve the agencies of the British government. The methodology is called “Projects in Controlled Environments”, or more commonly known as PRINCE. The methodology was updated to PRINCE2 in 1996, and in 2009 a new version was released of PRINCE2. This article looks at the new aspects of the latest version of PRINCE2.
Process Control Systems are an integral part of the production line and to communicate with a company's enterprise resource planning (ERP) system applications can be implemented called manufacturing execution systems (MES). These allows companies to have a visibility of the production line from the ERP system. This article discusses the uses and benefits of manufacturing execution systems.
In the manufacturing plant the use of conveyors is commonplace. It allows material to be moved quickly between work centers, reducing the wait time between locations, and improving the overall efficiency of the manufacturing process. This article looks at the types of conveyors as well as their advantages and disadvantages.
ASSIST4 from AEB is the comprehensive solution suite for logistics companies that offer a complete set of business services for end-to-end logistics. The application has six areas that can be used across the supply chain including warehouse management, order management, transport and freight, customs management, compliance management, and a visibility function. This article will look at the function and benefits of the different Assist4 components.
Agile project management is based on a set of ideals that have been adopted to overcome some of the shortfalls of traditional project management methodology. The ideas behind Agile have been developed over many years based on academic studies and real world experiences. This article looks at the methodology of Agile and how successful projects can benefit.
For purchasing professionals across all industries, pressure is being exerted to source more material, at high qualities, in shorter lead times with fewer resources. This has led to buyers searching in all corners of the world to find suppliers who can fulfill their requirements. Buyers now have a new tool which they can use to help them with their endeavors, called Panjiva.
Process control systems (PCS), sometimes called industrial control systems (ICS), are pieces of equipment along the production line that can be supervisory control and data acquisition (SCADA), programmable logic controllers (PLC), or distributed control systems (DCS), that can gather and transmit data that is obtained during the manufacturing process.
The Uniform Commercial Code (UCC) was published to harmonize rules for each of nine transactional areas that pertain to commerce and commercial law. The UCC has been adopted in full or partially in all fifty states, Guam, Puerto Rico, US Virgin Islands, and the District of Columbia. This article looks at the articles that make up the UCC.
Inventory shrinkage is most often thought of as result of shoplifting, but that is not completely true. A large portion of inventory losses are due to theft by a company’s own employees, through either theft, embezzlement, collusion with vendors, administrative errors, or vandalism. This article looks at the reasons why inventory shrinkage occurs.
Small businesses are of great importance in any economy. The US government recognizes a number of different types of small business, such as Minority Owned, Woman Owned, Veteran Owned, and Service Disabled Veteran Owned. This article looks at the various small business definitions used in business today.
Many Western companies have taken advantage of the resource available in India and the willingness of Indian states and the federal government to encourage investment in some of its more rural areas. Companies have created large automotive plants and have been frustrated by union activities allowed by law. This article looks at some of the worst industrial action that has affect the Indian automotive industry.
At some point during the product lifecycle a manufacturer may have to issue a product recall. The normal reason for a product recall is because of safety issues. This may be a safety issue caused by a manufacturing problem or by a faulty component supplied by a vendor. This article looks at all aspects of product recalls.
Hazardous material has to be transported from one facility to another, either by road, sea or air. The Department of Transport provides and enforces regulations that ensure safe transportation of hazardous materials in the United States. This article examines the different classes of hazardous materials are transported on US highways.
A bill of materials is used in the manufacturer of a product and should contain raw materials, sub-assemblies, sub-components, parts and the quantities of each. Each line of the bill of materials (BOM) will include the part number of the item, description, quantity, unit of measure, and a procurement type which describes if the part is purchased or manufactured.
The supply chain in the United States depends in a great part on the movement of raw materials and finished goods from vendor to customer and finally to the consumer. The majority of products in the United States are moved by commercial vehicle along the Interstate Highway System which includes 47,000 miles of freeways, highways and expressways. This article examines the history of the Interstate Highway System.
The US government spends hundreds of billions of dollars each year and the Office of Federal Procurement Policy (OFPP) has a central role in determining the policies and practices that federal agencies use to purchase the goods and services they need. This document looks at the OFPP and the Federal Acquisition Regulation (FAR).
Dunnage is best described as material that is used to protect goods while they are in transit. This can mean packing material that is packed around an item in a shipping crate or dunnage bags that can be inflated to ensure that items to do not move when shipped. This article looks at the different types of dunnage available for shipping.
Implementing a world class purchasing strategy will allow your company to stablize or even increase profits at a time when your costs are rising. This step shows where the rationalization of data is used.
Quality is an important part of the supply chain, whether it is quality inspections during the manufacturing process or checking quality as raw materials and parts enter the factory. Before any part or raw material is used in a manufacturing it is the responsibility of the purchasing department to ensure that the materials that arrive are of the correct quality specification. This article looks at quality in the procurement process.
The cost of carrying inventory is used to help companies determine how much profit can be made on current inventory. The cost is what a business will incur over a certain period of time, to hold and store its inventory. This article looks at the different components that combine to produce an overall cost of carrying inventory.
Businesses of any size has to purchase items to either manufacture finished goods or to provide services. Before a purchasing department can purchase material in SAP, the department’s unique infrastructure must be configured. To design a structure that best meets a business’s needs, you need to understand the SAP organizational structure and the decisions a purchasing department needs to make.
The procurement card, or P-card, is a form of company credit card that is issued to employees who can then purchase goods and services without having to process the purchase through a traditional purchasing procedure, such as using purchasing requisitions and purchase orders. This article looks at benefits and risks of the procurement card program.
Commercial trucks that operate on US highways can be classified based on their gross vehicle weight rating (GVWR). The classification is divided into eight classes, one through eight, although many people use the more generic terms, light duty, medium duty and heavy duty. This article examines the different types of truck classifications in the US.
DHL quickly became a leader in international air express delivery shortly after the company was founded in 1969. Initially the company operated a door-to-door express delivery service, transporting documents between San Francisco, California and Honolulu, Hawaii. With expansion into the Asia the company soon became the leader in international overnight service. This article looks at the rise of the overnight delivery company.
Just in Time or JIT method creates the movement of material into a specific location at the required time, i.e. just before the material is needed in the manufacturing process.
Safety in American warehouses is regulated by a series of standards from the Occupational Safety and Health Administration, commonly known as OHSA. The main focus of OSHA is to prevent work-related injuries, illnesses, and deaths. This article examines the most frequent citations given by OSHA and some of the practical solutions that can be employed in the warehouse.
When items are transported either domestically or internationally the delivery must be accompanied by the relevant documentation. The amount of documentation varies depending if the shipment is within the US or to another country. These documents include the freight bill, the bill of lading and the FOB terms of sale. This article examines these transportation documents.
The Six Sigma system uses a number of quality methods and tools that are used by Six Sigma trained professionals within the organization. The DMAIC problem solving method can be used to help with any issue that arises, usually by those who professionals in the organization who have reached green belt level. This article examines the elements that make up the DMAIC methodology.
Warehouses are busy places. Goods are constantly on the move; inbound and outbound deliveries have to be dealt with as well as the movements of items from location to location. Many companies are looking to warehouse operations are an area where they can make environmentally sound decisions. Companies are concentrating on three areas to help them in this endeavor; reduce, reuse and recycle. This article will show you where you can help your company make your warehouse green.
Sales and operations planning (S&OP;), sometimes known as aggregate planning, is a process where executive level management regularly meets and reviews projections for demand, supply and the resulting financial impact. S&OP; is a decision making process that makes certain that tactical plans in every business area are in line with the overall view of the company’s business plan.
Operational supply chain decisions are made hundreds of times each day in a company. These are the decisions that are made at business locations that affect how products are developed, sold, moved and manufactured.
Vendor Managed Inventory or VMI is a process where the vendor creates orders for their customers based on demand information that they receive from the customer. The vendor and customer are bound by an agreement which determines inventory levels, fill rates and costs. This article describes the VMI process.
Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance. This article looks at the history and implementation of TQM.
Measuring purchasing performance is important as the purchasing department plays an ever increasingly important role in the supply chain in an economic downturn. A reduction in the cost of raw material and services can allow companies to competitively market the price of their finished goods in order to win business. This article examines how companies are measuring purchasing performance.
Third party logistics (3PL) companies are a becoming an important part of today’s supply chain. These companies offer services that can allow businesses to outsource part of all of their supply chain management function. This article examines the rise of the 3PL providers and the mechanism that should be used in the selection of a third party logistics provider.
In the supply chain, forecasting is necessary for manufacturers. Companies use material forecasting to ensure that they produce the level of material that satisfies their customers without producing an overcapacity situation where too much inventory is produced and remains on the shelf. This article examines the use of forecasts in the supply chain with statistical and non-statistical methods.
SAP Extended Warehouse Management (EWM) is a component of the SAP Supply Chain Management (SCM) business suite. The EWM function is not a part of the SAP ERP suite, which contains standard warehouse management. SAP has announced that although they will continue to support SAP WM, they will not be enhancing the product, and all new warehouse functionality will be included in the EWM component.
Reverse Logistics can be defined as all activity associated with a product after the point of sale. The aims of reverse logistics include optimization of aftermarket activity, such as customer service, quality inspection and warehouseing, which can produce a new revenue stream, improve customer satisfaction and help the environment. This article examines the elements of reverse logistics.
International commercial terms or Incoterms are a series of sales terms that are used by businesses throughout the world. Incoterms are used to make international trade easier. They are used to divide transaction costs and responsibilities between buyer and seller. This article describes in detail the thirteen incoterms that can be used.
Negotiation in the purchasing process covers the period from when the first communication is made between the purchasing buyer and the supplier through to the final signing of the contract. Negotiation can be as simple as trying to obtain a discount on a case of safety gloves through to the complexities of major capital purchases. This article looks at negotiations in the purchasing process.
Small businesses are often not associated with manufacturing, however in the US small manufacturers can be found in all fifty states. Organizations such as the American Small Manufacturers Coalition (ASMC) exist to promote small manufacturers and to lobby government to assist with legislation and federal programs. This article examines some of the manufacturing processes that are used by small businesses.
The term cross docking refers to moving product from a manufacturing plant and delivers it directly to the customer with little or no material handling in between. Cross docking not only reduces material handling, but also reduces the need to store the products in the warehouse. In this article, the different types, benefits and products suitable for ctross docking are examined.
Toyota to Export French-made 'Yaris' to North America
Toyota City, Japan, May 16, 2013 -
Toyota Motor Corporation (TMC) announces that its production subsidiary in France, Toyota Motor Manufacturing France S.A.S. (TMMF), held a ceremony today in …
A blow by blow backtrack In light of the serious consequences of being caught drunk driving, we’re surprised that a larger consumer market hasn’t developed for personal breathalyzers. Sure, there’s a stigma attached to somebody who needs to carry one of …
A blow by blow backtrack In light of the serious consequences of being caught drunk driving, we’re surprised that a larger consumer market hasn’t developed for personal breathalyzers. Sure, there’s a stigma attached to somebody who needs to carry one of …
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… to include air cargo booking through Descartes’ cloud-based Global Freight Exchange (GF-X … booking portal for freight forwarders of all sizes. IAG Cargo will provide … IAG Cargo website, an electronic confirmation is delivered to the customer. Freight …
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… Workshop and Roundtable titled "Logistic Data Infrastructures: Challenges, Solutions and … , European Association for forwarding, transport, logistic and Customs services; CLMS Ltd … Servizi Cargo SpA; G.T.S - General Transport Service; Fast Freight …
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Voice command operations in the warehouse are becoming more common and Vocollect has introduced a new device that should increase productivity in the warehouse. The Talkman A700 solution has an integrated voice and scanning in one wearable device. It allows hands-free scanning for when operators are scanning totes or bins, but has all the features of a voice operated device.
The new A700 device can be used by any company that already uses Vocollect Voice for their warehouse operations. The device can be paired with the voice headset so that the operations are in sync. The user does not have to remove the device; they can pass a barcode in front to collect the data. This leaves the user to use both hands to complete the process, reducing any risk of injury to the user or damage to the goods.
Packaging can be especially wasteful when we look at small amounts of food encased in large amounts of packaging. Children's single serve food items top the list for waste as the amounts are very small. According to Greener Package, one company has come up with a novel idea to deal with this situation. Mighty Oats instant cereal for kids, from Little Duck Organics, contains compostable serving cups and a plantable inner carton liner.
Each of the single serving packages is made of a plant starch-based plastic resin with a coconut shell powder inclusion for improved rigidity. The cup is certified as being compostable in municipal and industrial aerobic composting facilities. It's not just the US where compostable packaging is beginning to become more acceptable. In Australia, Natureworks Packaging has a complete range of food packaging that is biodegradable and compostable. The packaging is made from biomass, which are organic compounds and completely renewable. Companies are looking at this type of packaging as it removes waste from crowded landfills, as well as requiring less than half as much energy to manufacture.
In the UK there is a great deal of discussion over the expansion of London's Heathrow airport or creating a new airport to the east of London. Heathrow has seen a twenty percent decline in the number of destinations served due to runway restrictions, and building new runways at the airport may not be possible. Meanwhile other European airports have been expanding, such as Paris. The air cargo industry is concerned that it will not have a voice in the discussions despite the fact that in 2011, goods worth £116 billion ($177 billion) were shipped via Heathrow, between the UK and non-EU countries. This amount is 35 percent of the UK's non-EU trade by value.
The arguments for and against any runway expansion at Heathrow has been raging for decades. As far back as the early 1970's a new airport in the Thames Estuary to the east of London has been proposed. The first was for an airport at Maplin Sands in 1971, but was abandoned in 1974 in favor of the expansion of Stansted airport. The latest Thames Estuary airport has been proposed by the Mayor of London, to build a new airport just off the Isle of Grain. However this has already been rejected by a government committee which is in favor of a third and perhaps fourth runway at Heathrow.
There has been a spate of maritime shipping accidents in the last week, with terrible accidents in Italy, Greece, and China. In Italy, a cargo ship crashed into a dock and pushing a control tower into the harbor, at the port of Genoa, killing seven. Authorities are investigating how the 40,000 ton container ship hit the dock when water and weather conditions were perfect.
In Greece, two seamen died and eight went missing after two freight vessels collided and sank in the Aegean Sea. The "Piri Reis" sank as it was transferring fertilizers from Algeria to Ukraine. It was hit by another freighter despite good weather conditions.
In China, eighteen crew members of a ship were rescued shortly before their vessel sank in the Yangtze River after hitting a bridge pier. The ship was transporting 12,500 tons of limestone when it hit the pier in the early morning.
The Boeing 747 has been a major part of the Boeing fleet since 1970, but its latest incarnation, the 747-8 with a longer body and new engines, has only has a total of 31 sales to commercial airlines. The freighter version of the 747-8 was scheduled to be launched in 2009 but due to issues along Boeing's supply chain, the eventual launch eventually occurred in 2011.
The 747-8 has a unique feature that it can open its nose door to load abnormally sized items as well as being loaded and unloaded quickly. But, unfortunately for Boeing the miserable sales of the 747-8F, as well as increased competition from its own 777 aircraft and freighters from Airbus, has forced Boeing to 1.75 airplanes a month from two a month. Boeing believes that air cargo demand will pick up in 2014 and that includes more sales of 747-8F over the next twenty years.
British online shoppers will be happy to know that long-time bricks and mortar staple, Marks and Spencer, (M&S) are updating their online fulfillment process with a new fully automated 900,000 square foot warehouse that will be able to handle an estimated one million orders per day. Current systems have meant that the fulfillment centers could only process a few hundred orders per day. The company had seen online orders jump some 22 percent, but the aging and inefficient warehouse systems were restricting any future growth for online sales, including any international sales. M&S had been selling only 15 percent of items online, compared with other companies selling more than 35 percent.
M&S have been spending towards £1 billion ($1.55 billion) on technology improvements. The new warehouse will not only improve online sales, but the speed in which items get to stores. It will also reduce the amount of stock the company needs to hold, and cut costs by rationalizing the current fifty warehouses down to three distribution centers.
The latest HSBC Purchasing Managers' Index (PMI) figures show that Indian manufacturing is at its lowest level since November 2011. The PMI is 51, showing that the sector is still expanding, albeit at a very low rate. Manufacturing has been in an expansionary mode for the last forty-nine months, but the figures for April are the lowest in that period. The country's infrastructure has come under scrutiny again as it has been suggested that frequent power shortages hampered manufacturing companies during the month.
Despite the poor figures, the outlook is somewhat brighter for manufacturing in India according to HSBC as they expect the lower rates and declining inflation to prompt the banks into an interest rate cut, which could stimulate business. Foreign investment has continued unabated with Panasonic starting to manufacture flat screen televisions in India to meet local regulatory demands. Sony has begun to make games for their PS3 gaming system locally in India, and US office furniture company, Steelcase, who will set up their first Indian manufacturing facility near Pune.
Banning the commercial use of all polystyrene packaging, commonly known as Styrofoam, will be decided by the Transportation, Sustainability and Energy Committee in Portland, Maine. The city council created the Green Packaging Working Group which has been looking at other green initiatives, such as the banning of plastic shopping bags, and plastic packaging.
The Green Packaging Working Group have highlighted the issues with polystyrene packaging, including that it is resistant to photolysis, or the breaking down of materials by a light source. In addition Styrofoam is lightweight and floats, meaning that vast amounts of polystyrene have accumulated along coasts and waterways around the world. It is now considered the main component of marine debris.
The Food and Drug Administration (FDA) had indicated that the budget cuts would seriously undermine their ability to ensure that food was inspected and safe for public consumption. The FDA issued a dire warning saying that as many as 2,100 inspections could be cut. However, they have now indicated that the cuts will be made to travel and training, although no final decisions had been made.
Although the FDA has said that food inspections will not, at this time, be affected, they are being pressured by the Center for Food Safety in court to answer why the agency had failed to produce regulations intended to help prevent outbreaks of food-borne illnesses. A federal judge found that the FDA is violating food safety law by delaying regulations. The agency has failed to comply with the mandatory rule making schedule of the Food Safety and Modernization Act (FSMA), signed into law in January 2011. As part of that act, the FDA had 18 months to issue new regulations. The judge has told that FDA that they have until May 20 to issue proposed deadlines for regulations.
The Environmental Protection Agency (EPA) has released a report to congress that highlights the successes of the Diesel Emission Reduction Act (DERA). In the report the EPA state that due to the DERA, between 2008 and 2010, more than 203,000 tons of Nitric Oxide (NOx), 12,500 tons of particulate matter and 2.3 million tons of Carbon Dioxide was reduced, while 63 million gallons of diesel fuel was saved.
The report found that more than 52,000 pieces of older diesel powered equipment across the US and in various applications were retrofitted, re-powered or replaced. Despite that reduction, the EPA estimates that about 11 million older engines are still in use in the US. The EPA are keen to remove older diesel engines as the new technology diesel engines have reduced particulate matter to near zero levels.
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Packaging can be especially wasteful when we look at small amounts of food encased in large amounts of 
In the UK there is a great deal of discussion over the expansion of London's 
There has been a spate of maritime shipping accidents in the last week, with terrible accidents in Italy, Greece, and China. In Italy, a cargo ship crashed into a dock and pushing a control tower into the harbor, at the port of 
The Boeing 747 has been a major part of the Boeing fleet since 1970, but its latest incarnation, the 747-8 with a longer body and new engines, has only has a total of 31 sales to commercial airlines. The freighter version of the 747-8 was scheduled to be launched in 2009 but due to issues along Boeing's supply chain, the eventual launch eventually occurred in 2011. 
British online shoppers will be happy to know that long-time bricks and mortar staple, 
The latest HSBC Purchasing Managers' Index (
Banning the commercial use of all polystyrene packaging, commonly known as Styrofoam, will be decided by the Transportation, Sustainability and Energy 
The Food and Drug Administration (
The Environmental Protection Agency (
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